Ather Energy Q2 Results: Revenue Jumps 57% as Losses Narrow to ₹154 Crore

Ather Energy, a prominent player in India's electric two-wheeler (E2W) market, has reported a strong financial performance for the second quarter of the 2026 fiscal year. The Bengaluru-based manufacturer saw its total income surge to ₹940.70 crore, marking a 57% increase compared to the same period last year. This growth was primarily driven by a significant rise in vehicle sales volumes and an expanding retail footprint across the country. The company's net loss for the quarter narrowed to ₹154.10 crore, down from a loss of ₹197.20 crore in Q2 FY25, reflecting improved operational efficiencies and cost management.

Record Revenue and Narrowing Losses

The July-September 2025 period proved to be a milestone for Ather Energy, as it recorded its highest-ever quarterly revenue. On a standalone basis, revenue from operations reached ₹898.90 crore, a 54% year-on-year increase. The sequential growth was also impressive, with revenue rising 40% from the ₹672.90 crore reported in Q1 FY26. This upward trajectory suggests that the company is successfully scaling its operations despite the competitive landscape of the Indian EV sector.

Profitability metrics also showed signs of recovery. The EBITDA margin improved significantly, strengthening by over 1,100 basis points year-on-year to reach -10%. EBITDA losses narrowed to ₹90.70 crore, compared to ₹124 crore in the previous year's corresponding quarter. Management attributed this progress to consistent operational execution, value engineering, and a richer product mix that includes the high-performance 450 series and the family-oriented Rizta line.

Sales Volume and Market Share Gains

Ather Energy delivered 65,595 units during the quarter, representing a 67% increase from the 39,305 units sold in Q2 FY25. This volume growth helped the company capture a 17.4% national market share in the electric two-wheeler segment, up from 12.1% a year ago. The company’s ability to maintain stable pricing while increasing volumes has been a key factor in its revenue growth.

Regional Performance and Expansion

South India remains Ather's stronghold, where it commands a 25% market share. However, the company is seeing rapid growth in other regions. 'Middle India'—comprising states like Gujarat, Maharashtra, and Madhya Pradesh—emerged as the fastest-growing region, with market share nearly doubling to 14.6% from 8.8% last year. The 'Rest of India' region also saw healthy gains, reaching a 10% market share, driven by traction in Jammu & Kashmir, Punjab, and Rajasthan.

To support this growth, Ather has been aggressively expanding its retail network. The company added 78 new Experience Centres (ECs) during the quarter, bringing its total count to 524 stores nationwide. This expansion strategy targets both metropolitan hubs and tier-2 and tier-3 cities, utilizing modular retail formats to optimize costs and accelerate the timeline for store-level breakeven.

Ecosystem and Technology Initiatives

Beyond vehicle sales, Ather is building a robust ecosystem that contributes significantly to its top line. Non-vehicle revenue, which includes software subscriptions, charging services, accessories, and spares, accounted for 12% of the total income in Q2 FY26. The company reported that 89% of its customers opted for the AtherStack Pro software package, highlighting the demand for connected features.

The Ather Grid, the company's fast-charging network, expanded to 4,322 points across India, Nepal, and Sri Lanka. This infrastructure is a critical differentiator for Ather, providing customers with reliable charging options and supporting long-distance travel. The recent rollout of AtherStack 7.0 further enhanced the software-defined experience of their scooters.

Market Impact and Stock Movement

Following the announcement of the Q2 results, Ather Energy's stock witnessed positive momentum, trading at approximately ₹626.00. The market responded favorably to the narrowing losses and the strong revenue growth. Analysts noted that the company's focus on improving unit economics and reducing its Bill of Materials (BOM) costs is beginning to reflect in the financial statements. However, the stock remains about 23% away from its 52-week high of ₹790.00, as investors continue to monitor the path toward full profitability.

Analysis of Future Outlook

Ather Energy is currently in a critical execution phase. The company is constructing its 'Factory 3.0' in Chhatrapati Sambhajinagar, Maharashtra, which is expected to significantly boost production capacity to 1.42 million units per year upon completion. This expansion is vital for Ather to compete with established players like TVS Motor and Bajaj Auto, as well as the market leader Ola Electric.

The company's strategy involves balancing high-growth capital expenditure with a disciplined approach to narrowing losses. While the reduction in government subsidies remains a challenge for the entire EV industry, Ather's focus on premium positioning and ecosystem monetization provides a buffer. The upcoming quarters will be crucial to see if the company can maintain its 20% plus adjusted gross margins while scaling its volume further.

Conclusion

Ather Energy's Q2 FY26 results demonstrate a company that is successfully navigating the transition from a startup to a mature industrial player. With a 57% jump in income and a meaningful reduction in losses, the fundamentals appear to be strengthening. As the company prepares for further manufacturing expansion and continues to innovate on its software platform, it remains a key stock to watch in the Indian EV ecosystem. The focus now shifts to the second half of the fiscal year and the company's ability to sustain this momentum toward operational breakeven.